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  "documentTitle": "Broadridge Financial Solutions, Inc. (BR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-09-28 00:00:00",
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  "notes": "The slide uses a red flag icon to signal a warning/contradiction. It contrasts the company's stated margin drivers with the author's skepticism.",
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      "kind": "callout",
      "text": "BR lists its number #1 driver of Non-GAAP operating income margin is from “Scale and Natural OpEx leverage from a SaaS business.” However, Spruce Point does not believe that BR is a high-quality SaaS business...",
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      "kind": "callout",
      "text": "BR lists its number #1 driver of Non-GAAP operating income margin is from “Scale and Natural OpEx leverage from a SaaS business.” However, Spruce Point does not believe that BR is a high-quality SaaS business, if one at all, given it admits it drives no pricing power and does not report metrics consistent with other SaaS companies such as Net revenue dollar retention or remaining performance obligation, and has just $414m of deferred revenue in relation to $3.7 billion of recurring fee revenue.",
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      "text": "ADJUSTED OPERATING INCOME MARGIN (NON-GAAP)",
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      "text": "Scale: Natural OpEx leverage from a SaaS business; Digital: Margin expansion due to mix shift toward digital; Efficiency: Contributions from business reengineering; M&A: Primarily weighted to early-stage; Investment: Strategic investment",
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      "text": "Adjusted Operating Income Margin: 18.7%",
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      "text": "Source: Investor presentation, Sept 2022",
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      "kind": "title",
      "text": "BR Claims To Be A SaaS Business, But With No Pricing Power....?",
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